U.S. States to Raise Minimum Wages in 2025

Starting January 1, 2025, San Diego's minimum wage will rise to $17.25, surpassing California's state minimum of $16.50, in an effort to support residents amid rising living costs. In contrast, Texas adheres to the federal minimum wage of $7.25, although cities like Austin and San Antonio have higher rates for city workers, with Austin reaching $21.63. In total, 21 states will increase their minimum wages in 2025, impacting 9.2 million workers and generating $5.7 billion in additional wages. Despite higher state minimums, fast food and healthcare workers in California earn more due to sector-specific regulations, with wages at $20 and $23, respectively. Washington state will implement the highest state minimum wage at $16.66. These changes highlight ongoing efforts in the U.S. to address worker welfare and economic stability amid varying regional cost-of-living challenges.